5 signs you’re Undercharging
Are You Charging What You’re Really Worth?
Setting the right price for your services can be challenging, especially if you are a contractor or operate in a specialised industry. With costs rising everywhere, it is more important than ever to review your pricing strategy. If you have not adjusted your rates recently, you might be leaving money on the table.
Here are five common signs that you may be undercharging.
1. Your Quotes Are Always Accepted—No Questions Asked
Do clients immediately agree to your quotes without negotiating, asking for a breakdown, or trying to get a discount? While this feels good, it might also mean they are pleasantly surprised by how low your price is and are eager to lock in a bargain before you realise it.
2. You Are Constantly Busy but Cash Flow is Tight
Are you working flat out, yet there never seems to be enough money left over to hire an assistant, a subcontractor, or even just invest back into the business? If your workload is high but your bank balance does not reflect it, your prices are likely too low to support sustainable growth.
3. Your Prices Haven't Changed in Over Two Years
In most sectors, small annual price increases are standard practice to keep up with inflation and rising business costs. If your fees have remained the same for several years, you have effectively given your clients a discount each year and fallen behind the market rate. A yearly price review is a healthy business habit.
4. You Are Fully Booked and Turning Away Work
If your diary is packed and you consistently have to say "no" to new clients, demand for your services is clearly outstripping your supply. This is the ideal time to increase your prices. A higher rate will help you manage demand and ensure you are being paid a premium for your in-demand skills.
5. Clients Don't Respect Your Time
Do you find that some clients frequently cancel last minute, are slow to pay, or make unreasonable demands? This can sometimes be a side effect of low pricing. When clients feel they are not paying much, they may not value your time or expertise as highly as they should. Charging what you are worth often attracts more respectful and professional clients.
Finding Your Pricing Sweet Spot
Determining the right price for your services requires a little research. Investigate what your competitors are charging and consider the unique value you offer.
We can also help. With our experience across various industries, we can provide insight into typical market rates. Get in touch for a chat—we would be happy to help you ensure your pricing is on the right track.